| Abstract: |
: We examine the evolution of salary distribution in the National Basketball
Association (NBA) over 33 years, using a panel of all players earning above
the rookie minimum scale. We identify three distinct eras of salary dynamics
by applying time series structural break analysis, with breaks aligned to key
changes in NBA Collective Bargaining Agreements. Our findings show that while
real salaries have risen substantially across all income levels, inequality
has grown, particularly among the highest earners. Analyzing the Lorenz curve
and Gini coefficient, we observe a period of increasing inequality during the
1990s, followed by a brief shift toward more equitable salary distribution in
the early 2000s and a return to rising inequality in recent years. These
insights reveal the complex interplay between union negotiations, league
revenues, and market forces, offering a deeper understanding of how CBA
policies have shaped salary distribution in professional sports. Key Words: :
Unions, Collective Bargaining Agreement, NBA, Structural Breaks Analysis |